Wall Street Rebounds After Fed Shakeup Rumors Dispelled

U.S. stocks rebounded on Wednesday after President Trump swiftly denied reports suggesting he would fire Federal Reserve Chair Jerome Powell. Earlier, stocks had plummeted following reports of a shakeup. Market indices climbed as Trump's denial stabilized investor sentiment amid ongoing trade tensions and monetary policy criticisms.

Wall Street experienced a sharp rebound on Wednesday after President Donald Trump quickly dispelled rumors about a potential Federal Reserve leadership shakeup. Reports earlier in the day had suggested a possible dismissal of Fed Chair Jerome Powell, sparking a dramatic market sell-off. However, Trump's denial restored some investor confidence, helping indexes recover.

Earlier volatility saw U.S. stock indexes plunge, and the dollar tumble as speculations emerged about Powell's future role at the Fed. Trump had criticized Powell's monetary policy decisions but retracted claims suggesting any immediate changes. Subsequently, the Dow, S&P, and Nasdaq surged into positive territory.

The volatility in the markets is compounded by mixed inflation data and global trade tensions, with Trump announcing additional tariffs and ongoing negotiations with major trading partners. Market participants continue to watch developments closely, as geopolitical factors and monetary policies intertwine amid economic uncertainties.

(With inputs from agencies.)